Night Hawk 6

This is APA Communications Director Gregg Overman with the APA Information Hotline for Friday, Nov. 9.

APA AND AMR MANAGEMENT REACH AGREEMENT IN PRINCIPLE: This afternoon the APA Board of Directors voted to present AMR management with a comprehensive counter-proposal. Management responded by agreeing to APA’s proposal. The APA Board of Directors will proceed in compliance with policy-manual requirements and vote to send the agreement-in-principle to the membership as a tentative agreement for a ratification vote.

APA designed our comprehensive counter-proposal to provide our pilots with an industry-standard contract while enabling American Airlines to complete a successful restructuring and compete on a level playing field with its network-carrier peers. The Board’s vote on the motion to present the comprehensive counter-proposal was 13 for, two against and one absent.

We will provide details of the new agreement-in-principle shortly.

Also today, the Board received a closed-session briefing from Jack Butler, who serves as the lead counsel for the Unsecured Creditors’ Committee. In addition, Andrew Yearley of Lazard, APA’s financial adviser, addressed the Board.

As of this recording, the Board remained in session. Thanks for checking this hotline

Gallifrey

Is it any good?

AAflyer

My understanding is we gave them our (APA's) last best final offer. Should have details shortly.

One of the biggest issues was the 76 seat (APA max seating and 86,000 MTOW) vs 79 seats and if not mistaken 92,000 MTOW the company wanted. It sounds as if the accepted our proposal. Not happy about it, but the cat is out of the bag in the rest of industry.

Domestic codeshare was also a big issue.

Waiting to see what was agreed to.

Regards,

AAflyer

Night Hawk 6

Here is the rub: Will the pilots vote on a contract or just another list of agreements in principle? CAL/UAL has had the good since to wait for completed contract language. Why not APA?

viking767

It will be in contract language.

ForeverFO

Any word on the 13% equity "thing?" Will it be something meaningful, something that can be turned into cold hard cash, or will it be some ephemeral options or "future/potential payout"?

A six figure cash bundle overlaid on a six year contract would take some sting out of weak pay rates, which is what I suspect we will encounter.

The APA board voted 13-2 vs 9-7 for the "LBFO". I will be very interested in reading their opinions.

clear4approach

"Future/potential payout" reminds me of sports trades which involve "a future draft pick" or "a player to be named later!!!!!

Night Hawk 6

It has taken UCAL months to get their TA into contract language so how long will it take APA to do the same. APA has not presented a complete deal in final contract language for memenership ratification in two decades or more. Hope the membership remains strong and gets a deal that will further the profession, something that has also been missing for decades.